The Australian Government has announced an additional 40 grants worth more than $17.3 million to boost local manufacturing, support Australian businesses, and strengthen the country’s sovereign defence industry.
The funding, awarded under the $170 million Defence Industry Development Grants (DIDG) program, aims to enhance defence manufacturing capabilities, improve export competitiveness, and foster technical skills development across the sector.
Minister for Defence Industry Pat Conroy said the Albanese Government is committed to building a strong and self-reliant industrial base to meet current and future defence needs.
“We are backing Australian businesses and backing Australian workers to deliver the capabilities our Defence Force needs – now and into the future,” Conroy stated.
“From the west coast to the east coast, the Albanese Government is building a stronger and more resilient defence industry by investing in Australian innovation, skills and manufacturing.”
The newly funded projects are designed to help businesses modernise operations and scale up manufacturing in areas critical to Australia’s defence capabilities.
Six of these projects, valued at $3.6 million, are funded by the Australian Submarine Agency to support the AUKUS nuclear-powered submarine program and uplift the country’s industrial base.
“These grants are about ensuring that local manufacturers have the tools and skills they need to compete globally while delivering vital equipment and technology for the Australian Defence Force,” Conroy said.
“I look forward to visiting many of these businesses in the years to come and seeing their work up close and in action.”
Recipients under the Sovereign Industrial Priorities Stream include ANCA Engineering Solutions and Griffin Marine Services, each receiving $1 million to acquire advanced equipment to boost precision manufacturing and production capabilities.
Other beneficiaries such as Veem in Western Australia and Ronson Gears in Victoria will use the funding to procure multi-axis CNC machines, 3D sand printers, and cylindrical grinding systems for naval and land defence programs.
Fleet Space Technologies in South Australia will receive nearly $1 million to acquire advanced satellite manufacturing and testing equipment, while Alfatron in Victoria is set to upgrade its automated printed circuit board production capacity with a $987,000 grant.
The program also supports workforce development, with Halliday Engineering in New South Wales receiving $210,555 for upskilling workers in technical skillsets essential for sovereign manufacturing.
Additional funds have been allocated to enhance security measures and support businesses in meeting Defence security requirements, with Silentium Defence Trading in South Australia and Sayfa in Victoria among the recipients.
The DIDG program provides matching grants of up to 50 per cent for eligible projects and will remain open for applications from defence suppliers until 2028.
According to the government, these initiatives reflect its long-term commitment to expanding the nation’s manufacturing footprint while ensuring a robust and self-sufficient defence supply chain.
